HomeMy WebLinkAbout08-21-2015
CITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT COMMISSION
AGENDA
MOUNDS VIEW CITY HALL
FRIDAY, August 21, 2015
1. CALL TO ORDER
2. ROLL CALL
3. APPROVAL OF THE AGENDA
4. APPROVE MINUTES from June 19, 2015
5. EDC BUSINESS
A. None
6. REPORTS OF STAFF
A. Mounds View Project Updates
7. REPORTS OF COMMISSIONERS
8. NEXT REGULAR EDC MEETING – September 18, 2015 if needed
9. ADJOURN
Commissioners: Chair Jason Helgemoe, Dan Larson, Jim Freichels, Gary
Stevenson, Jessica Rieland, Laurie Shoop, and Royal
Dahlstrom
City Staff: Jim Ericson, City Administrator
Brian Beeman, Business Development Coordinator
Skyline Motel Site
2.85 Acres Redevelopment Opportunity
Redevelopment Site: Private Owners selling all (3) parcels as one package
Mustang Drive
Old Hwy 8
County Rd 10
I-35W
County Easement
Bauer Welding & Metal Fabrication
Midwest Motor Express
Bio-Clean Mobile Wash
Skyline Motel
Description:
This prime mixed-use development opportunity is located on the west side of Old Hwy 8 and north of
Mustang Drive approximately nine miles northeast of Downtown Minneapolis and 11 miles northwest of
Downtown St. Paul. The site is situated in close proximity to transportation networks, major
employment centers, colleges, and universities, regional shopping centers and numerous recreational
spots.
Property Addresses:
4889 Old Highway 8, Section 17 Town, 30 Range 23
4889 Old Highway 8, Section 17, Town 30, Range 23
4889 Old Highway 8, Section 17, Town 30, Range 23
Lot Size:
2.85 acres includes all 3 parcels (Relatively flat, some sloped, some wetland and trees, Old Highway 8
access, quick access to I-35W)
Price:
$724,700 includes all 3 parcels both building and land as per 2014 Ramsey County Estimated Market
Values Payable 2015 (Asking Price $1,400,000, owner will only sell all 3 parcels together)
Status:
Mostly motel with one vacant lot.
Zoning:
All parcels are I-1 (Industrial) Provide for the establishment of warehousing and industrial development.
Possible/Permitted Uses I-1: Adult establishments, building materials, sales yards, retail lumber yard,
contractors equipment sales and rentals, storage and sale of food, and fuel not for resale, flammable
liquids above ground storage not to exceed a total of eight hundred (800) gallons, underground bulk
storage not to exceed twenty five thousand (25,000) gallons if located not less than fifty feet (50’) from
a residential district, golf course, governmental and public utility building and structures, greenhouses,
and nurseries, motorized vehicles or recreational equipment sales and service and rental, newspaper
and general printings, warehouses, wholesale and retail showrooms and offices; provided that at least
fifty percent (50%) of the principal building is devoted to storage or warehousing of merchandise.
Accessory Uses: Buildings and structures for a use accessory to the principle use; Office accessory to the
principal use, Off-street parking with stipulations, Off-street loadings with stipulations, Signs with
stipulations.
Conditional Uses: (Requiring a conditional use permit); Open to outdoor storage as an accessory use,
Open or outdoor services, sale and rental as a principal or an assessor use and including sales in or from
motorized vehicles, trailers or wagons; provided that, a. Accessory outside service, sales and equipment
rental a connected with a principal use is limited to thirty percent (30%) of the gross floor area of the
principal use. b. Outside sales areas are fenced or screened from view of neighboring residential uses or
an abutting residential district. Motor freight terminals, Industrial planned unit development, Solar
energy and wind generator systems and solar and wind generator structures, warehouses, laboratories,
experimental, film and/or testing, Manufacturing, compounding, processing, packaging or treatment of
flammable liquids, Automobile assembly and/or major repair, Creamery, bottling plant, ice cream
manufacture, ice manufacture, cold storage and/or milk distribution station, Manufacturing,
compounding, processing, packaging or treatment of cosmetics, pharmaceuticals and food products and
the rendering or refining of fats and oils, Manufacturing, compounding, assembly or treatment of
articles of merchandise from previously prepared materials, such as bond cloth, cork, fiber, leather,
paper, plastic, metals, stones, tobacco, wax, yarns and wools, Manufacture of musical instruments,
novelties and molded rubber products, Manufacture or assembly of electrical appliances, instruments,
and devices, Manufacture of pottery of other similar ceramic products, only by electricity or natural gas,
Manufacture and repair of electrical signs, advertising structures and light sheet metal products,
including heating and ventilating equipment, Blacksmith, welding or other metal shop, laundries, bag,
carpet and rug cleaning, foundry casting lightweight nonferrous metals or electric foundry not causing
noxious fumes or odors, storage of flammable liquids over eight hundred (800) gallons above ground,
wireless telecommunications towers and antennae subject to provisions, day care center, group nursery
with several provisions. (Please see current codes, additional stipulations apply)
Demographics:
1 mile radius population (2012): 9,384
3 mile radius population (2012): 60,119
5 mile radius population (2012): 176,470
1 mile Growth 2012 – 2017: 1.6%
Income:
5 mile radius avg. HH income (2012): $77,211
Traffic Counts:
Old Hwy 8
Property Information:
4889 Owner(s): Dayaram & Sons Ltd, Property ID#: 173023140002, 2014 Ramsey County Estimated
Market Values Payable 2015: Land: $324,500, Building: 71,500, Total = $39600, Last Sale Date:
6/1/1995 @ $336,000, Asking Price: $ 1.4 mill for all (3) parcels, Land Area: 1.49 acres, Current Use:
Motel and Tourism
4889 Owner(s): Dayaram & Sons Ltd, Property ID#: 173023140003, 2014 Ramsey County Estimated
Market Values Payable 2015: Land: $162,900, Building: $37,100, Total = $200,000, Last Sale Date:
3/1/1991 @ $46,498, Asking Price: $1.4 mill for all (3) parcels, Land Area: 0.88, Current Use: Vacant
Land/Commercial Minimum Improvement
4889 Owner(s): Dayaram & Sons Ltd, Property ID#: 173023140001, 2014 Ramsey County Estimated
Market Values Payable 2015: Land: $104,500, Building: $24,200, Total = $128,700, Last Sale Date:
8/5/2013 @ $666,000, Asking Price: $1.4 mill for all (3) parcels, Land Area: 0.48, Current Use: Motel and
Tourism
Current Owner/Contact:
Uday Bhakta, Co-Owner (1 of 3 Owners)
763.443.5741
Udaybhakta1974@gmail.com
Raman Bhakta, Co-Owner
Sanjay Bhakta & Bhakta U. Dahyabhai, Co-
Owner
For more Information:
City of Mounds View
Jim Ericson
City Administrator
763.717.4001
JimE@ci.mounds-view.mn.us
Wetlands
Minutes of the Economic Development Commission
City of Mounds View
Ramsey County, Minnesota
Regular Meeting
June 19, 2015
City of Mounds View, Council Chambers
2401 County Road 10, Mounds View, MN 55112
1. CALL TO ORDER
Chair Jason Helgemoe called the meeting to order at approximately 7:30 a.m.
2. ROLL CALL
Members Present: Chair Jason Helgemoe and Commissioners, Gary Stevenson, Jim
Freichels, Jessica Rieland, Royal Dahlstrom and Dan Larson
Members Absent: Commissioner Laurie Shoop
Staff Present: Business Development Coordinator, Brian Beeman
Meeting Attendees: Council Member, Gary Meehlhause
3. APPROVAL OF JUNE 19, 2015, AGENDA
Motion/Second: Commissioner Freichels moved and Commissioner Stevenson
seconded the approval of the February 19, 2015, EDC agenda.
Motion Carried: 6 Ayes, 0 Nays
4. APPROVAL OF FEBRUARY 20, 2015, EDC MINUTES
Motion/Second: Commissioner Stevenson moved and Commissioner Larson seconded
the approval of the February 20, 2015 EDC minutes, as presented.
Motion Carried: 6 Ayes, 0 Nays
5. EDC BUSINESS
None
6. REPORTS OF STAFF
Crossroad Point Redevelopment Project
Business Development Coordinator, Beeman provided the Commission with an update
on the Crossroad Pointe redevelopment site. Staff has been busy trying to attract
developers to the site and has had contact with approximately 30 developers. Staff also
met with four developers in cooperation with Ehler’s, the city’s financial consultant
discussing all of the redevelopment sites in the city. Each of the developers rated
Crossroad Pointe as the best site for redevelopment.
Draft EDC Minutes
February 20, 2015
Page 2 of 7
The developer meetings led to a planned tour of select developer’s facilities to be held
June 29, 2015 at 5:00 p.m. The City Council, Planning Commission, Economic
Development Commission, and city staff will attend with the purpose of viewing each
developer’s product, ask questions, and then determine which developer the city would
prefer to develop Crossroad Pointe.
Staff has advertised Crossroad Pointe on several free sites. One site provided
approximately 130 hits. If these sites don’t provide developer interest, staff may look at
advertising on paid sites.
Business Retention & Expansion Visit (BR&E) Updates
Coordinator Beeman informed the Commission that he tries to visit at least one business
each week with the goal of visiting all 150 this year. Business Retention & Expansion
visits were completed with Central Transport and Apple Tree Dental. Beeman and EDC
Chair, Jason Helgemoe visited Central Transport in June and found out that they will be
moving in about a year because they outgrew their current space. Currently, they are on
about 13 acres with 65 terminals and they are looking for 20 acres with about 85
terminals. The decision was not made locally; it was made at corporate headquarters in
Michigan. Therefore, there was no control locally in the decision to move.
Trucking companies are struggling to find qualified drivers because most trucking
companies require at least two years of experience. In order to gain this experience new
drivers must work in teams and be away from their families for extended periods of time.
This hinders gaining the necessary driving experience. As a result, trucking companies
are contracting with rail road companies to pick up the slack. However, many trucking
companies have room for growth and if able to hire qualified drivers, they would continue
expanding their operations.
Chair Helgemoe added that the company is a fairly large national company and as a
result, they don’t have some of the local control over the decisions being made.
Helgemoe stated, the company is looking for more land and Mounds View doesn’t have
the amount of land they require. However, trucking companies seem to be doing well,
which is a good indicator that the economy is doing well. Helgemoe continued, stating
the business didn’t have anything bad to say and they are pleased with the city services.
Beeman added, that another trucking company named Saia has purchased Central
Transport’s site and will be leasing it back to their competitor, Central Transport for
about a year before taking over the site.
Beeman reported that he also visited Apple Tree Dental. Apple Tree Dental will complete
their second build out in the spring of 2016 as long as they can get the proper financing.
Once completed, approximately 10-30 administrative staff will move from Coon Rapids
to the Mounds View location creating a parking concern. They are in conversations with
the movie theater to determine if they could possibly park in the theater’s parking lot then
use the city trail to access their building. Apple Tree Dental asked if the city had planned
to install lighting along the path. Currently, the city does have plans for this. Another
possibility is to park on both sides of Mounds View Drive. Another idea is to park at the
Ramsey County Library with an agreement that the dental office would maintain the
Draft EDC Minutes
February 20, 2015
Page 3 of 7
proposed trail from the library building to the existing city trail. However, this is only an
idea at this point. Since the parking wouldn’t be needed until next spring, there is still
time to work out the details.
Chair Helgemoe asked what is meant by maintaining. Beeman said it meant removing
the snow, cutting the grass along the sides, and clearing the path when needed.
Beeman said the County has the money to install the trail but they don’t have anyone to
maintain it once installed. Helgemoe said that he assumed Apple Tree Dental already
had their own maintenance person anyway, so this seems reasonable.
Commissioner Gary Stevenson mentioned there was already a trail in place that the city
owns. Beeman clarified that the trail the library is considering would be a spur
connecting the existing city trail to the library.
Chair Helgemoe asked if Apple Tree Dental was staying busy. Beeman responded that
when he was there it was very busy and they continue to grow. Beeman added there is a
misperception that Apple Tree Dental only services special needs patients since they are
a non-profit organization. Beeman clarified that Apple Tree Dental is open for anyone
needing dental care even though they have specialized equipment like a chair lift and
sliding chair and 3D x-ray machines and special payment plans. Helemoe added that
they also accept all insurances.
Silver View Plaza
Coordinator Beeman updated the Commission on Silver View Plaza, stating that it was
sold this spring, is under new ownership, and a new property management team.
Beeman talked to the new property manager meeting in the vacant space and
discussing options to fill the vacancy. Beeman also reviewed the list of $15,000 worth of
improvements expected to be completed this year like new security lighting in the rear of
the building and new overhead led lighting under the front awning. Beeman asked the
property manager if the large sign along County Road 10 would be removed or
improved. The property manager said the sign is in the 2016 budget and a decision will
be made at that time.
Chair Helgemoe said the Silver View property has been a challenge in past years to get
the property owners to make any improvements like Pastor Enterprises did a number of
years ago across the street in Mounds View Square. So this news is promising.
Beeman reported that the property manager tried to convince Fantastic Sam’s to move
into the vacant space so the school district could take the entire east half of the building.
However, Fantastic Sam’s hasn’t been interested in moving due to cost and other
reasons not given.
Rice Creek Commons (TCAAP) Development Update
Next, Coordinator Beeman provided an update on anticipated improvements relating to
Rice Creek Commons. An aerial picture was posted for the Commission to review.
Beeman stated that most of the businesses were in agreement of the County Road H
improvements and that the County had tried to contact the owner of Lucky’s Gas Station
Draft EDC Minutes
February 20, 2015
Page 4 of 7
numerous times with the owner not returning calls or emails. As a result, the County
conducted a study to determine if fuel trucks could still access the site and make their
turns if both accesses were shut off. The County concluded that the fuel trucks could still
make the turns and needed to move forward with the project despite the owner of
Lucky’s not returning messages. Beeman said this will be a major improvement with
turning lanes at the intersection of County Road H and 10, a roundabout east of 35W
Auto Repair, a new modern bridge over I-35W , and access to the regional trail system.
Ramsey County and the Minnesota Department of Transportation are still finalizing the
plans.
Chair Helgemoe asked if a stop light would be added on Old Hwy 8 near the Mermaid.
Beeman reported that from the latest information the County did not plan to include a
stop light at that intersection.
Commissioner Dahlstrom asked about County Road I. Beeman stated that Ramsey
County is still considering their options for that intersection and most of the discussion
revolved around County Road H.
Commissioner Freichels asked if the sound wall would be installed. Council Member
Meehlhause stated that the sound wall is only for I-35W and not to Hwy 10 as part of this
project.
Commissioner Freichels raised his concerns for the anticipated increase in traffic from
Old Hwy 8 to the intersection of County Road 10 & H. He would like to see a stop light at
the Old Hwy 8 & County Road H intersection. Commissioner Helgemoe stated that the
distance from that intersection to County Road 10 is short and perhaps that is one
reason the County decided against the stop light. Freichels suggested it was most likely
the result of costs and a lack of County resources.
Mounds View Project Updates
Commissioner Rieland provided an update on the Bio Life building project. Bio Life will
take possession of the new building in July and exterior signs where installed this week.
The only other issue is the address. They will be processing donors in August with a
grand opening expected in September.
Coordinator Beeman further explained the addressing issue stating that the County left
old signs, each with different wording, which confuses people. Some businesses are
using three variations of County Road 10; Hwy 10, County 10, and Hwy 10 NE.
Medtronic and Sysco are located near Hwy 10. Otherwise, Mounds View doesn’t have
any businesses on Hwy 10. They are all located on County Road 10. Businesses have
been complaining that their patients and customers can’t find them because Google
Maps and other mapping aps don’t recognize the different addressing versions. Staff
contacted the U.S. Postal Service because they stopped delivery to the new Bel Rae
Senior Living who was using County 10 on their address. The Post Office is delivering
mail by referencing the old county signage which is out dated, causing further confusion.
There is also controversy on what to officially name County Road 10. In the past,
Mounds View Boulevard was suggested among other names. However, what happens
when the road also passes through Coon Rapids Boulevard, and Spring Lake Park,
Draft EDC Minutes
February 20, 2015
Page 5 of 7
etc.? Also, the signs were estimated at around $800,000 to update. The issue comes
down to funding.
Commissioner Helgemoe said the State engineers came up with the estimate and in the
past Mounds View has worked with the City of Blaine and Spring Lake Park to come up
with an agreed name called North Town Boulevard. New sign specifications and
mounting, as well as the length of the name, footings, etc. increased the cost.
Commissioner Dahlstrom suggested staff work with Google to update the mapping Apps
with new tags. Helgemoe said the GPS services use different database services. So,
staff would need to contact all of the services like TomTom and Garmin, etc.
Commissioner Freichels, said, if business are advertising old addresses on websites,
then he could see where this would be a heartache for customers. Beeman stated that if
staff spent the time contacting all of the businesses to change their address to County
Road 10 then the name gets changed once again, businesses will be starting all over
with new addressing. Dahlstrom suggested that businesses should be checking where
the hits are happening, whether it is Google or TomTom, etc. then telling them of the
updated address so each business can contact the App companies to update their
system.
Coordinator Beeman reported that the Bel Rae ribbon cutting ceremony was well
attended and this weekend is their public open house. Anyone is welcome to park at City
Hall or the Community Center. Shuttle busses will be running back and forth from the
parking areas to the Bel Rae facility where they will have food and entertainment. The
event runs from 1:30 to 3:30 p.m. They are over 30% occupied.
Snyder Building
Beeman reported that filling the Snyder building is a continual challenge. The price of
$2.4 million is the main reason the building still hasn’t sold. Beeman has received a
number of inquiries, however as soon as they hear the price, they either laugh or simply
walk away. Chair Helgemoe said the property has been sitting there for a long time and
believed the price was about three times the market rate. He also asked if the building
was currently leased. Beeman said when he talked to the realtor, she indicated it was
not leased but they are asking $14 per square foot plus utilities and taxes which is still
too high for this area. Beeman said he’ll continue to market the property, however until
they decide to move down on the price, he anticipates the building will continue to sit
vacant. Helgemoe asked if anyone could expand towards the public works area.
Beeman said there is a water well in that area with an easement and a new public works
building will be constructed next year on the property. Helgemoe asked about the area
across the street near the church. Beeman said that is a wetland area and mitigation
may be cost prohibitive.
Mounds View Business Council Meeting
Beeman said he had already provided the EDC an update of last month’s Mounds View
Business Council meeting in the latest monthly update and there will be no meetings this
summer. The next meeting will be held in September.
Draft EDC Minutes
February 20, 2015
Page 6 of 7
Other Upcoming Events
Beeman reported that Music in the Park started last night, followed by Movies in the
Park. Commissioner Dahlstrom attended both events and provided an update, stating
there were about 100 people in attendance and the movie ended about 10:30 p.m. It
was fun, nice to have a community event. Viewing the movie was better abound 9:00
when it was darker, however he acknowledged that kids do need to get to bed to start
the next day and the event was a nice way to utilize the park.
Beeman added the Movies in the Park was rained out a week or so earlier and that is
why both events were the same night. Dahlstrom commented that the Facebook updates
were a big help to inform the public of the change. Beeman said the next Music in the
Park will be held July 16 at 6:30 p.m. in Silver View Park. The Teddy Bear Band will be
playing and all kids are encouraged to bring their teddy bears. The country band, Two
Hicks and a Chick will be playing August 20 at 7:30 p.m. at Silver View Park.
7. REPORTS OF COMMISSIONERS
Chair Helgemoe asked for reports from Commissioners. There being no reports,
Helgemoe reported there may be an increase of traffic this weekend due to the Back to
the 50’s event at the fairgrounds. The event is held each year. Freichels mentioned that
they normally have security to direct traffic and staging is done at the Mermaid.
Helgemoe reported that the Mounds View Business Council will not meet in June, July,
or August and will start again in September.
8. NEXT REGULAR EDC MEETING – July 17, 2015 if needed.
9. ADJOURN
All Commissioners said they should be able to make it to the next meeting. Chair
Helgemoe asked Business Development Coordinator Beeman his thoughts on holding
meetings if there are no actionable items. Helgemoe thought the Commission could
meet on the County Road 10 issue or other projects if needed. Beeman provided that he
doesn’t mind meeting if that is what the Commission desires, however he doesn’t want
to waste the Commission’s time either. If it is only an update and something he can
email to the Commission he is fine doing that if the Commission would prefer that over a
meeting. Beeman suggested they break for the summer then hold a meeting in the fall
unless something happens with the Crossroad Pointe development. Helgemoe said the
meeting can be held as needed then asked for any other comments from
Commissioners.
Chair Helgemoe asked if a motion was needed to adjourn the meeting. Beeman read
Robert’s Rules of Order and concluded that the Chair can either state that the meeting is
adjourned or ask for a motion whichever the Chair prefers. There being no further
business, the June 19, 2015, meeting adjourned at 8:22 a.m.
Draft EDC Minutes
February 20, 2015
Page 7 of 7
Respectfully submitted,
_______________________________
Brian Beeman
Business Development Coordinator
Item #: 6A
Meeting Date: August 21, 2015
Type of Business: EDC
City of Mounds View Staff Report
To: Economic Development Commission
From: Brian Beeman, Business Development Coordinator
Item Title/Subject: Reports of Staff
A. Crossroad Pointe Redevelopment Project
In the month of July, staff has continued to notify developers that the city is accepting
proposals for the Crossroad Pointe redevelopment area. To date, the city has been in
receipt of one proposal for a 3-4 story apartment complex, keeping Greenfield Ave open
and proposing 114 units for a three story or 151 units for a four story building. The city is
expecting 2-3 more proposals and is anticipating taking all proposals to the City Council
next month.
B. Business Retention & Expansion (BR&E) Visits
Since the July EDC update, BR&E visits have been completed with Zero Gravity, Jonco
Die, UL, Ace Supply Company, Inc., Midway Industrial Supply, MinValco, J & W
Instruments, Inc., The Tyson Companies (Trailwood Transportation Inc.), and
Hagemeyer.
Zero Gravity: Owners, Scott and Heidi Nagel started in the coin laundry business and
wanted to start a business that could fit their 5 kid's lifestyle and be a fun environment.
They started Zero Gravity 2011 in Mounds View and have a large trampoline, dodge
ball, arcade, and laser tag with about three birthday rooms. They have also entertained
the idea of a rope climbing apparatus. They have 3 FT and 25 PT employees. The
industry is growing, however in the summer the trending is down. In the fall and winter,
business is very good. They are planning on staying in MV long term and they have
considered installing concessions, however, it would require installing a commercial
kitchen and is cost prohibitive. They are looking at a second location in the future. They
give the city a 10 of 10 points for quality service.
Jonco Die: EDA Commissioners Jason Helgemoe and Royal Dahlstrom and city staffer
Brian Beeman met with Jonco’s Die Randy Gordon, President; Joann, Gordon, CFO;
Steve Rousselow, General Manager; and Dan Johnson, Sales Manager. The company
manufactures steel rule cutting dies. They don't design them. Instead, their clients send
them the dimensions and they manufacture them within a three day turn-around. They
moved to Mounds View in 2000 from Minneapolis because they were forced out due to
Reports of Staff
August 21, 2015
Page 2 of 10
Eminent Domain. This year is their 50th year Anniversary. Much of the industry is
changing to digital printing making dies less useful. The industry is decreasing, but dies
are getting larger because of Amazon.com needing large boxes. They have 75 full-time
and 3 part-time employees. They ship 60% of their product out of MN into several states
in the Central U.S. Last year was good, but this year is down. Strengths of community:
Access to I-35W, good city services, and who are very supportive to local businesses.
They use the Mermaid for their events. Weaknesses: High Schools don’t offer shop
classes anymore which, decreases the number of candidates seeking this type of work.
UL, llc: They test medical devices and certify them for a variety of medical device
companies. Mounds View is a branch office; they have branches all across the U.S. for
all types of devices including telephones, toasters, and anything electronic. The Mounds
View branch focuses on medical devises. They were formerly in Vadnais Heights but
out grew their space and moved to Mounds View. They have 9 full-time employees. The
industry is growing because of more and more medical needs. They have about 30
branches with the Asian markets growing the fastest. They give the city a 10 of 10 and
have no concerns.
ACE Supply Company, Inc.: They distribute HVAC parts. Mounds View is a branch with
another branch in Eagan and the headquarters in St. Louis Park. They moved to
Mounds View from Roseville around 1998. They have walk-in traffic mainly from
contractors. They operate in IA, WI, ND, and SD. Most of their customers are from the
40 mile radius. They specialize in sheet metal. They have 7 full-time employees. The
industry in increasing and they own the building. They said Mounds View is a clean city
and didn’t have anything negative to say. They give the city 8 of 10 for services.
Midway Industrial Supply: The original owner started the business 1955 and sold the
business in 1981 but kept the building. Midway moved to Mounds View from
Minneapolis in the 1980's and has been in Mounds View for the past 30 years. The
business sold in 2012 to a Milwaukee private equity firm keeping the headquarters in
Mounds View. Since there is no room to expand in Mounds View, they recently built a
new facility in Kansas City with more room to expand. They are a distributer and
integrator distributing in 11 states in the Midwest. Iowa is the fastest growing area
because they have reliable hard working employees there. They have 28 full-time
employees and expect to hire more next year since sales are up. Overall, the industry is
flat. They occupy 16,400 SF and have doubled their business in only 6 years. They said
the city is good to work with except when they didn't allow an expansion and only
allowed a garage to be built. They like the location and give the city an 8 of 10.
MinValco: They moved to MN in 2000 from Roseville and have two branches as well as
two buildings in St. Cloud. The branch in Allice, WI is wholesale only and St. Louis Park
is the headquarters. They sell HVAC controllers like gas valves, building controls and
pneumatic Honeywell products. They ship products nation-wide and also have walk-ins.
Reports of Staff
August 21, 2015
Page 3 of 10
Business locally is the fastest growing segment. They have 4 full-time and 3 salesmen
that use the office as a remote office. Business has been flat due primarily to the
weather and somewhat from the economy. They have been in the Mounds View
building for 15 years and don't plan on moving. Strength of Mounds View: variety of
businesses and access to I-35W. Weaknesses: need more dining.
J & W Instruments, Inc.: Through exclusive representation and distribution, J&W
routinely applies and sells controllers, recorders, pressure transmitters, flowmeters,
thermocouples, RTDs, infra-red temperature transmitters, control valves, analytical
water chemistry, data acquisition products, flame safe guard, and instrument air
controls. They distribute for Honeywell and other manufacturers. They moved to
Mounds View about 30 years ago. Suppliers are from all over. The food sector seems to
be the fastest growing segment. They mainly operate in 5 states in the Midwest. They
have 18 full-time and one part-time employee. The industry is mainly flat right now with
a slight increase. They are leasing month to month and looking for a new more modern
space. They like the location near I-35W & 694 and think Mounds View needs more
restaurants. They give the city 8 of 10.
Trailwood Transportation Inc.: EDC Commissioner Gary Stevenson and Brian Beeman
visited Trailwood Transportation which started in Saint Paul in 1929 hauling live beef
and transitioning to the transportation of chocolate and candy as a less than load (LTL)
distributor. They have leased space in Arden Hills and Eagan and in the 1960’s they
built in New Brighton because of its proximity to the rail road. In 2012 they transitioned
from a transportation company into warehousing for all types of companies with mainly
30 day contracts. They currently have about 18 fulltime employees and they have office
space available for lease. They mainly handle product from a five state region with
seasonal fluctuations during Halloween through Christmas, then a slight decline after
Christmas. They have noticed a recent increase in warehousing demand and if the rate
of growth continues, they could see the need to double the capacity. With 65,000
square feet of space and 26’ ceilings, they are currently maxed out on space. They are
pleased with the city services giving the city 10 out of 10 for city services performance.
Hagemeyer: EDC Chair Jason Helgemoe and Brian Beeman visited Hagemeyer and
spoke with Katie McCormick, Site Manager. Hagemeyer is an industrial distributor of all
types of products such as: toilet paper, grinding wheels, coolant for CNC machines,
hearing aids, adhesives and pretty much everything. The Mounds View location has 30
fulltime employees who service mainly Minnesota and western Wisconsin.
Companywide, there are several locations across the U.S. specializing in different types
of products. For example, the Houston, TX location provides mainly life safety
equipment, while the Minnesota location specializes in respiratory training & servicing,
maintenance, and fittings. They distribute to medium and large manufacturing
Reports of Staff
August 21, 2015
Page 4 of 10
companies. The HQ is in Charleston, SC with ownership in Paris, France. Moving to
Mounds View in about 2012, they like the location because it is closer for their
employees. The industry is stable and consistent with a steady increase. They have
room for expansion and plan on staying in MV for a long time. Giving the city high
marks, their only concern is the upcoming construction.
C. Silver View Plaza
The new property manager has inquired about replacing the large sign along County
Road 10. They are gathering information on the city codes for signage and they will be
gaining an understanding of costs as they have the sign replacement earmarked in their
2016 budget. All parking lot potholes have been filled and repaired.
D. Rice Creek Commons (TCAAP) Development Update
Remediation activities are expected to be completed on the TCAAP site by October
2015 with construction starting in the spring of 2016 and final completion late 2016. The
following timeline outlines the major steps that have been accomplished and the next steps
that will allow for development to begin on the Rice Creek Commons site in 2016.
Reports of Staff
August 21, 2015
Page 5 of 10
Much discussion has been had between Ramsey County, MnDOT, the Mounds View
City Council, and local businesses on the proposed County Road H & 10 intersection
improvements slated to begin in the spring of 2016. The latest alternative to prevent the
closing of Clifton Drive is a proposed roundabout east of 35W Auto Repair.
As you may recall, Ramsey County met with local Mounds View businesses owners
with details surrounding the preliminary construction layout February 2, 2015. Ramsey
County met with city staff shortly after, and again with business owners March 12. On
April 6, 2015 the County met with the Mounds View City Council in a Council Workshop
to provide an update on the project. The County maintained that they needed to get
approval of the roundabout alternative from MnDOT.
Ramsey County will be meeting with the City Council at its August 24, 2015 meeting
starting at 7:00 p.m. to request municipal consent. The County is hoping to have the
final plans signed by MnDOT before the municipal consent meeting and does not
anticipate having other meetings with the city or businesses until it gets closer to
construction, perhaps in early 2016. Anyone is welcome to attend the meeting. It is
anticipated that Ramsey County will submit Final Plans to MnDOT October 2015
beginning construction March 2016 with substantial completion November 2016 and
final completion spring 2017.
Reports of Staff
August 21, 2015
Page 6 of 10
E. Mounds View Project Updates
Biolife: Construction of the new Biolife facility has been completed. The Ribbon Cutting
Ceremony will be held October 13, 2015 at 2325 County Road 10, Mounds View, MN
55112 at 10:00 a.m. All EDC Commissioners are welcome to attend. Commissioner
Jessica Rieland, will provide a verbal update.
Bel Rae Senior Residential Facility: Ebenezer, the management company, has stated
that the new facility is now over 40% filled with more rooms reserved.
Apple Tree Dental: Apple Tree Dental is planning their second floor build out for the
Spring of 2016. They may be adding 10 or more new administrative staff and they are
currently working on a parking solution for the additional employees.
Pat’s Muffler: Owner, Rick Austin has removed the for sale listing and for sale sign from
his property. Instead, he is leasing the building to a tenant who will be using the building
as an auto repair shop. The business will likely open September 1, 2015.
Sankheda Wedding Services, Inc.: An Indian family has leased the old Holly Hood
space next to Snap market on County Road I and Edgewood Drive. They will be selling
Reports of Staff
August 21, 2015
Page 7 of 10
wedding supplies for Indian style weddings. The business is expected to open
September 1, 2015.
Outsource Receivables Inc.: Outsource Receivables is a new business located at 5354
Edgewood Drive. They provide medical billing and coding services and serve medical
offices in Minneapolis, St. Paul, Greater Minnesota, Wisconsin, Iowa, North Dakota and
South Dakota.
F. Snyder Building
Staff has learned from the realtor that the owner of the Snyder building is from Canada
and built the building about 2007 or 2008 during the peak of construction boom. Once
the “Great Recession” hit, Snyder’s went out of business, gave the keys back to the
owner and walked away from their lease agreements. Some developers sued Snyder’s
and won settlements. Others, like the Mounds View location resulted in the original
owner taking over the remaining mortgage. According to the broker, the owner didn’t
state how much is owed or what the current asking price and rent is. She did say
however, that the price is now less than two million dollars and they are accepting
reasonable offers over $1 mill and under $2 mill. The original asking price was $2.5
million with the lease rate at $14 p/sq. ft.
City staff has passed along a list of interested business owners and the broker has
stated that she has been in contact with at least one interested party and is waiting for a
call back from another. Staff continues to field phone calls from interested parties and
many businesses like the location but can’t afford the price and/or require more parking
spaces. Since the property is privately owned, the city can only suggest they reduce
their price to a reasonable level. However, the broker did say the owner is very flexible
& creative and would entertain a lease back or other type of financing. Apparently, the
owner has other buildings and strip malls in Canada and is an experienced developer.
She believes he built three Snyder buildings and a series of Katz pharmacies in
Canada.
G. County Road 10 Addressing
At the June EDC meeting the renaming of County Road 10 was discussed. Businesses
are using variations of County Road 10 in their addressing. With the recent additions of
the Bel Rae Senior Living and Bio Life, the Post Office refused delivery to Bel Rae until
they changed their address. Staff has been in regular contact with the local Post Office
to address the confusion over businesses using variations of County Road 10. Recently,
City Administrator, Jim Ericson sent emails and spoke to the person at the USPS in
Minneapolis responsible for addressing. Below are copies of those emails.
Reports of Staff
August 21, 2015
Page 8 of 10
Good afternoon Janelle,
Thank you for the phone call this morning and for reassurances that the Post Office will continue to
deliver mail to properties on the County Road 10 corridor regardless of how the address is noted, be it
Highway 10, County Highway 10, or County Road 10.
The two newer buildings on County Road 10 which caused some initial strife were BioLife and Bel Rae.
BioLife is not yet open but Bel Rae is; here are their addresses:
BioLife -- 2325 County Road 10
Bel Rae -- 2330 County Road 10
The Bel Rae facility has 98 housing units.
As I had indicated by phone and below in email, we will continue to work with MnDOT and Ramsey
County to resolve the ongoing confusion relating to the name of County Road 10. We'll notify the Post
Office once there is something definitive concerning the name.
Thank you again,
Jim Ericson
City Administrator
City of Mounds View
2401 County Road 10
Mounds View, MN 55112
763-717-4001 (Phone)
763-717-4019 (Fax)
763-464-9644 (Cell)
www.ci.mounds-view.mn.us (Web)
Subject: Highway 10 / County Road 10
Good afternoon Ms. Daniels,
I am following up on the naming confusion associated with County Road 10 here in Mounds View.
(Refer to the emails below with Brian Beeman in our office.)
As you know, there are two roadways passing through Mounds View identified with the number 10--
County Road 10 and Trunk Highway 10. County Road 10 is under the jurisdiction of Ramsey County
while Trunk Highway 10 is under the jurisdiction of MnDOT. When the new Trunk Highway 10 opened in
1999, the Post Office indicated that since no residence or business directly accessed the new highway,
there was no need to change the addresses for those business and residents on the old County Road 10.
Thus, many properties never changed their address despite the roadway no longer being Highway 10.
For years the City has been working to resolve the naming confusion, even going so far as to partner
with the cities of Spring Lake Park and Blaine to come up with a local name for the roadway. The name
Reports of Staff
August 21, 2015
Page 9 of 10
chosen was "Northtown Boulevard", however due to excessive costs to replace signs on the MnDOT
corridors (e.g., signs one and two miles from exits on 35W, Highway 65, etc.) the "rename the corridor"
project stalled. The confusion remains an issue, of course, as people intending to come to a home or
business on County Road 10 may end up in Anoka or somewhere else altogether. That's an issue we'd
like Ramsey County and MnDOT to resolve, however that seems to be more challenging that we ever
imagined. What we did not anticipate was pushback from the Post Office on the delivery of mail.
As I stated above, the City of Mounds View and other businesses were advised by the Post Office that
"Highway 10" addresses would work just as well as "County Road 10" addresses for locations on the
corridor. If the address is in Mounds View, it wouldn’t seem to matter whether the envelope reads
County 10 or Highway 10, as it can only refer to one property on the corridor. For many years (16
years?) The Post Office has been able to deliver mail in spite of this naming inconsistency, thus we
anticipate this practice can continue successfully into the future while we work to resolve the issue. Yet
the City alone cannot resolve what is not ours to resolve; County Road 10 is Ramsey County's road and
the old signage on the corridor are County signs.
All that said, new businesses on the County Road 10 corridor (such as BioLife) and the new senior
residential facility (Bel Rae Senior Living) should officially be addressed as "County Road 10", not
Highway 10. While we continue to seek an acceptable resolution with the county and state road
authorities, we hope that the US Post Office will work with the City, our businesses and our residents on
the corridor to ensure all mail is delivered, regardless of which roadway designation is noted in the
address—until the issue is resolved once and for all.
Please contact me should you have any questions or suggestions as to how to better resolve these
issues.
Best regards,
Jim Ericson
City Administrator
City of Mounds View
For now, it appears that the Post Office will continue to deliver mail to local businesses
using the different variations of County Road 10. The bottom line is that the renaming
will most likely not occur without funding in place. Staff will notify the EDC if there are
any new developments in the renaming efforts.
H. Mounds View Business Council Meeting
The next Mounds View Business Council meeting will be held September 9, 2015 at
7:30 a.m. at the MV Community Center. A speaker is TBD.
Reports of Staff
August 21, 2015
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I. Other Upcoming Events
Music in the Park: Free Concert Series! August 20, 2015 @ 7:30 p.m. at Silver
View Park, featuring Two Hicks and a Chick, country band.
Festival in the Park: Mounds View’s annual celebration, Festival in the Park, will
held at the City Hall Park Saturday, August 22, 2015, from 9:00 a.m. to 10:00
p.m. Activities include a 5K fun run, fun race bike race, the 9th Annual Car Show,
a parade, live music, crafters, food vendors and fireworks at 9:40 p.m. For
details, visit www.ci.mounds-view.mn.us. If you are interested in sponsoring the
Festival, please call Theresa Cermak, at 763.786.7051. We look forward to
seeing you August 22.
City Hall Closed for Labor Day: Monday September 7, 2015
J. Reports of Commissioners (Agenda Item 7)
K. Upcoming EDC Meetings (Agenda Item 8)
If further development occurs with any of the city’s redevelopment areas a meeting may
be called for September 18 at 7:30 a.m. Staff will keep the Commission informed.
______________________________
Brian Beeman
Business Development Coordinator
Item #: 5A
Meeting Date: August 21, 2015
Type of Business: EDC
City of Mounds View Staff Report
To: Economic Development Commission
From: Jim Ericson, City Administrator
Item Title/Subject: Consider an EDA Levy for to Support Economic
Development Program
Background
The Mounds View City Council has shown support for transitioning the Business
Development Coordinator position to fulltime from its present ¾ time status in 2016; this
will add an additional $23,000 in wages and benefits to the EDA Budget. Even without
the expansion of the coordinator’s time, the EDA will need additional revenue to
generate enough administrative fees to cover 2015 budgeted spending levels. The
projected EDA deficit for 2016 is about $37,000, which includes the additional time for
the Business Development Coordinator.
As the City Council has been advised, there are two ways to address this imbalance:
increase the transfer to the EDA from the general fund, which would in turn bump up the
levy increase by a corresponding amount, or the City could adopt a special EDA levy.
Minnesota statutes allow EDA’s to levy a small amount to support economic
development activities. For Mounds View, the statutory limit would be about $161,000,
or, about a 3.7% levy, separate from any general fund levy increase. The benefit of
adopting an EDA levy in 2016 is that residents wouldn’t see as much of an impact due
to the decertification of TIF #2. Having a separate levy would also allow the EDA to
build up some reserves in the event the EDC and the Authority would want to purchase
a parcel, offer a development incentive or offer micro-loans to businesses. Without a
levy, there are no dollars that could be used unless budgeted for in the general fund.
The City could certainly levy less than the maximum. Below are those numbers.
1% EDA Levy: $43,503 2% EDA Levy: $87,121 3% EDA Levy: $130,509
Staff Recommendation
Staff requests that the EDC make a recommendation to the EDA clearly stating whether
an EDA levy would be supported and appropriate, with specific reasons for or against.
The EDC’s recommendation will be used to assist the City Council in making an
informed decision.
Respectfully submitted,
____________________________
Jim Ericson, City Administrator